Lendco adds sub-four per cent product to reward green borrowers

The two-year fixed rate product is priced at 3.49 per cent and is subject to a seven per cent fee.

Alex King, executive director at Lendco, said: “Net zero is more important than ever so it makes sense to price this product in a way that rewards borrowers who sustainably add to, or refinance their portfolios.

“We’re pleased we can help our brokers with this new low-rate option. It compliments our already competitive product range and is aimed at those customers who are after a low headline rate for a shorter period, and who want to invest in more energy-efficient assets.”

The government had initially planned to bring in EPC legislation to mandate that rental properties have an EPC rating of C or higher, but this was watered down by the Prime Minister Rishi Sunak in September.

Lendco loan book approaching £1.5bn

Lendco was launched in 2018 with the “aim of correcting many of the frustrations felt by intermediaries in the UK specialist lending market”. Its loan book is approaching £1.5bn and application volumes in Q4 have exceeded £200m.

The firm has recently signed a £250m warehouse funding line deal with Santander CIB, which it said would be used to support its growth plans specifically in buy to let, and also renewed a £300m warehouse facility in November.

In June, the firm signed a bridging warehouse facility with Natwest. The increased funding was brought in to allow the lender to widen its bridging criteria, resulting in more choices for its clients.

While in May, it priced its third securitisation Atlas 2023-1 valued at £304m, it was oversubscribed with the lender receiving offers that climbed to £580m, against £290m of bonds being offered.

The lender’s buy-to-let product range can cater for standard properties, multi-unit freehold blocks (MUFB), small houses in multiple occupation (HMO), medium HMOs and large HMOs. There are also tracker, product transfer and bridge exit options.